If we want to optimize the flow of physical goods and also the complex flow of information and financial transactions, working collaboratively with all the involved members is much. It also helps us in achieving excellence. But, Complex and difficult are the terms used when it is coming to manage today’s supply chains and it starts with the manufacturing of the goods to the distribution and different intermediate channels and steps involved. It is even more difficult when it comes to the perishable goods. Also, Many parts of the logistics value chain are also bound to manual processes mandated by regulatory authorities. For example, companies must oftentimes rely on manual data entry and paper-based documentation to adhere to customs processes. All this makes it difficult to track the provenance of goods and the status of shipments as they move along the supply chain, causing friction in global trade. Blockchain can potentially help to overcome these frictions in logistics and realize substantial gains in logistics process efficiency. Here the intermediate steps and channels all depends upon the type of goods that we are serving. Because there may be different and multiple locations, payments, customs, invoices etc this may lead to the extend over months of time. There are lot of problems and difficulties faced due to the complexity and lack of transparency of our current supply chains and this might get reduced with the automaxis blockchain solution.
If we have to know the value of the products in the chain, it is extremely important to have transparency, and this is lagging in the current supply chain practices. In a similar way, it’s extremely difficult to investigate supply chains when there is suspicion of illegal or unethical practices. They can also be highly inefficient as vendors and suppliers try to connect the dots on who needs what, when and how.
The very things that are necessary for reliability and integrity in a supply chain are provided by blockchain. Blockchain provides consensus—there is no dispute in the chain regarding transactions because all entities on the chain have the same version of the ledger. Everyone on the blockchain can see the chain of ownership for an asset on the blockchain. Records on the blockchain cannot be erased which is important for a transparent supply chain.
Since every transaction is recorded on a block and across multiple copies of the ledger that are distributed over many nodes (computers), it is highly transparent. It’s also highly secure since every block links to the one before it and after it. There is not one central authority over the blockchain, and it’s extremely efficient and scalable. Ultimately, blockchain can increase the efficiency and transparency of supply chains and positively impact everything from warehousing to delivery to payment. Chain of command is essential for many things, and blockchain has the chain of command built in.
In the consumer goods and retail industry, use of blockchain technology is must to improve supply chain transparency and to track provenance. Companies focusing specifically on food tracking, trace-ability, and safety are the companies those are evoling business in and around Blockchain.
There is a key requirement for track-and-trace applications as there are many products that are temperature sensitive and temperature controlled for eg. Col-Chain Logistics. They will adopt more secure and intelligent forms of digital identity for each physical product moving from the provision of a passive barcode or serial number to, for example, enabling interactivity with the use of Internet of Things (IoT) sensors. Smart devices can be securely tied to or embedded in the physical product to autonomously record and transmit data about item condition including temperature variation, to ensure product integrity, as well as any evidence of product tampering.
Automaxis Logistics solutions using blockchain:
automaxis provides a distributed ledger system, which makes it easy for participants to track the ownership of an asset, could be applied to track perishable products that move between countries and factories. This is a blockchain solutions for supply chain operations.
Few of the applications of blockchain involves:
- International clients may require certification of origin documents, best created, validated, and secured with blockchain’s notarisation characteristics. Change of ownership midway through a shipment, called Merchanting, is made possible, as well as the possibility to trace back the origin of all components of a finished item’s bills of material.
- The use of third party logistics service providers (3PL’s), ocean carriers, and freight forwarders can be regulated and automatically controlled by irrevocable and immutable smart contract execution.
- Goods returned for repairs or refurbishment are managed within strict processes to ensure that repairs follow strict protocols, and once refurbished, the products are again compliant with specifications and criteria that blockchain’s notarisation efficiently can resolve.
- Goods moving within a return logistics process may also be subject to warranty clauses that require changing the title of possession. Similarly, malfunctioning goods could be traced all the way back to the origin of components, to perform a root-cause analysis and identify the source of defect.
Thus few Implications from automaxis’s blockchain are:
- Increase logistics speed – electronic contracts that automate the transfer of ownership of the goods and authorize the release of payments. Because the money will move faster, supply chains will move faster.
- Increase logistics security and visibility – security and visibility are often perceived as opposing forces, the one curtailed by the other. The reasons for this are:
- It is distributed in nature. There is no master computer or platform holding the entire chain. Each participating node have a copy of the chain.
- When someone wants to add a transaction to the chain, the majority of participants in the network will have to validate it.
- Everyone participating in a blockchain network, whether permissioned/private or permission-less /public, can see the blocks and the transactions stored in them. This doesn’t mean everyone can see the actual content of the transactions – that is protected by each participant’s private key.
- The database can only be extended and previous records cannot be changed.
- Increase logistics integration – Blockchain takes digitization of the supply chain to an altogether much higher level. Digitization exponentially increase the potential for integration and convergence of technologies and systems. This makes blockchain the ideal candidate for a “supply chain operating system”.
- Greater logistics scalability – With no master computer or platform holding the entire chain, as is the case with current supply chain management platforms and enterprise resource planning systems, a blockchain network can scale with the Internet.